Binance plans to restart withdrawals after world’s biggest crypto heist
Binance prepares to restore withdrawals
Binance, the world’s largest cryptocurrency exchange, has announced that it will resume withdrawals after recovering most of the digital assets stolen in a major security breach. The company said the first phase would begin on Sunday between 0600 and 0900 GMT.
The initial withdrawals will cover 15 cryptocurrencies, including Bitcoin, Ether, XRP and Dogecoin. Binance said it had replaced about $6bn of the stolen assets using its own funds.
The remaining 5% consists of cryptocurrencies that are harder to buy in large quantities because they have lower trading activity. The company said finding enough of these assets could take more time.
FBI links attack to North Korean hackers
The Federal Bureau of Investigation (FBI) has blamed a North Korean state-backed hacking group known as TraderTraitor for the attack. The agency said the hackers had started converting stolen funds into Ether.
The FBI also warned that the stolen assets could face “further laundering” through related technology. North Korea has repeatedly denied using government-linked cyber units for financial theft and other illegal activities, while its diplomatic offices did not respond to requests for comment.
The attack adds to a growing list of major cryptocurrency thefts. Researchers at TRM Labs estimate that hackers stole around $2.9bn in cryptocurrency through nearly 150 attacks last year.
Uncertainty remains over North Korea’s role
Blockchain security firms TRM Labs and Chainalysis said most of the Binance theft took place within about 20 minutes late on Thursday. They also found similarities between the attack and earlier cyber operations blamed on North Korea.
US President Donald Trump said the United States had not yet confirmed North Korea’s involvement. “We don’t know if it’s North Korea but if it is, we’ll talk to North Korea about it,” Trump told reporters on Saturday in comments posted by a White House handle on X.
Binance promises to cover customer losses
Binance said it had been working with other companies in the cryptocurrency industry to freeze the stolen assets. Around $3bn had been located by Friday, according to the exchange.
The company has repeatedly promised to bear the financial cost of the attack rather than pass the losses on to customers. It has internally set aside about $6.34bn to cover the stolen funds.
Binance said it used money from its $1bn Secure Asset Fund for Users (SAFU), its Futures Insurance Fund and its corporate treasury to purchase replacement cryptocurrencies. The SAFU fund is a reserve designed to protect customers when security problems affect the exchange.
Co-CEO Yi He said on Saturday that the company would use 50% of its SAFU reserves and later restore the fund to around $1bn. The exchange’s other co-CEO, Richard Teng, described the incident as a “complex attack” involving a compromised laptop and harmful software designed to erase evidence.
Cryptocurrency prices fell on Friday as news of the attack spread. Binance tried to reassure customers that their funds remained safe while it worked to restore normal services.
Binance’s decision to cover most of the stolen funds is an important step towards restoring customer confidence. However, the incident shows how serious security risks remain in the cryptocurrency industry.
The FBI’s claim of North Korean involvement has also increased concerns about cybercrime and international financial security. Binance will now need to strengthen its systems and prove that customer funds can be protected against similar attacks.
Also read: PIA’s first Boeing 787-9 Dreamliner arrives in Islamabad - What's new?
